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Minimum CPF interest rates to remain unchanged until end-2022

Minimum CPF interest rates to remain unchanged until end-2022

Screengrab from Google Street View of the CPF building in Maxwell Road.

SINGAPORE: The minimum interest rate for Central Provident Fund (CPF) accounts will remain unchanged, the board of Singapore's retirement savings scheme announced on Monday (Sep 27).

The prevailing floor of 4 per cent - due to expire at the end of this year - for Special, MediSave and Retirement accounts (SMRA) will be extended to the end of 2022, said the CPF Board in a joint news release with the Housing and Development Board (HDB).

"The Government had committed to maintaining a floor of 4 per cent on SMRA interest and had subsequently extended the floor in light of the global economic conditions and the fact that interest rates had been exceptionally low," said the news release.

From October to December this year, CPF members will continue to earn interest rates of up to 3.5 per cent on their Ordinary account and up to 5 per cent on their Special and MediSave accounts.

These rates include an extra 1 per cent paid on the first S$60,000 of a member's combined balances - part of the Government's efforts to enhance the retirement savings of CPF members, the authorities said.

Members aged 55 and above will earn another 1 per cent on the first S$30,000 of their combined balances - bringing their earnings to a total of up to 6 per cent on their retirement balances.

The extra interest received on the Ordinary account will go into the Special or Retirement account.

Members above 55 years old who are part of the CPF LIFE scheme will still earn the extra interest on their combined balances, including the savings used for CPF LIFE.

The concessionary interest rate for HDB mortgage loans will remain at 2.6 per cent in the last quarter of 2021. This rate is pegged at 0.1 per cent above the Ordinary account interest rate, which will stay at 2.5 per cent.

The interest rate for Special and MediSave accounts will remain at 4 per cent in the same period.

As previously announced, the Retirement account interest rate will remain at 4 per cent until the end of this year.

Source: CNA/jt

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